Funding secured: Wafeq's Series A round brings in $7.5 million to expand their cloud-based accounting software for small and medium-sized enterprises in Dubai.
Wafeq Secures Series A Funding to Revolutionize SME Accounting in MENA
Wafeq, an accounting and invoicing software startup based in Dubai, has raised $7.5 million in a Series A funding round. The funding round was led by London-based 9900 Capital, with participation from Gary Turner, the former CEO of Xero's EMEA operations, and existing investors Raed Ventures and Wamda Capital.
Founded in 2019 by Nadim Alameddine, Wafeq offers a comprehensive platform for accounting and business banking, designed specifically for small and medium-sized enterprises (SMEs) in the UAE and MENA region.
In a bid to modernize economies, Nadim Alameddine, the founder and CEO of Wafeq, emphasized the importance of digitization for regional businesses. This sentiment is echoed by 9900 Capital, who believe that the government's digitization efforts under Vision 2030 are fostering more robust business practices.
Faisal Alhajj, Head of MENA at 9900 Capital, commented on Wafeq's role in transforming SME accounting in the MENA region. He believes that Wafeq's hyper-localized platform is well-positioned to support SMEs as they unlock growth in MENA.
Following the Series A funding, Wafeq's growth strategy focuses on deepening digital integration and expanding fintech features tailored for SMEs in the UAE and MENA region. Key elements of this strategy include:
- Fully digital integration with WiO Bank, enabling SME customers to open bank accounts directly within Wafeq without needing separate apps. This seamless in-app banking is a first in the UAE market and aims to simplify financial operations for businesses.
- Embedded financing services planned within the Wafeq platform, allowing SMEs to access credit and loans without leaving the accounting environment. This embedded lending service targets improving SME liquidity and financial management ease.
- Enhanced payment tracking capabilities, providing real-time statuses (such as pending payments at the central bank) directly inside Wafeq. This feature improves transparency and cash flow monitoring for SMEs.
- Leveraging AI, automation, and e-invoicing trends to reshape digital accounting practices for the region, helping Wafeq stay at the forefront of innovation and cater to market-specific needs like VAT returns and Arabic-English bilingual support.
Wafeq envisions evolving into an all-in-one digital financial platform that integrates banking, lending, accounting, and payment automation, well-tailored for SMEs in the UAE and broader MENA markets. This approach helps differentiate Wafeq from other accounting tools by embedding financial services directly into its platform, driving customer retention and growth post-Series A.
The latest funds raised by Wafeq will be used to accelerate product development and expand the team. Wafeq's platform empowers SMEs to manage their finances in a simple and effective manner, as stated by 9900 Capital. The startup claims to have grown to over 8,000 customers in less than 2.5 years.
Wafeq offers different plans, starting from $180 per year or $29 per month. The startup provides software for SME business owners and accountants to send invoices, quotes, and purchase orders, manage inventory and payroll, and generate financial reports. It also offers integrations with different banks in UAE & Saudi, including Saudi Awwal Bank, Al Rajhi Bank, HSBC, and Wio, and Stripe, Foodics, and Salla.
Wafeq aims to simplify accounting in the MENA region and plans to grow its presence in KSA and the UAE, supporting job creation and digitization in line with Vision 2030. However, no new information was provided about Wafeq's plans to grow its presence in KSA and the UAE or its aim to support job creation and digitization in line with Vision 2030.
- The funding secured by Wafeq will facilitate the development of a hyper-localized platform that targets transforming small and medium-sized enterprise (SME) accounting in the MENA region, capitalizing on technology advancements.
- As part of Wafeq's growth strategy, the startup plans to incorporate fintech features into its accounting and business banking platform, such as seamless in-app banking, embedded financing services, enhanced payment tracking capabilities, and the embrace of AI, automation, and e-invoicing trends, to empower regional SMEs with robust business practices and digital finance management.
